Fund formation is an exciting, yet fear-inducing venture. Trust me, we’ve seen many first-time investment fund managers experience these feelings.
So if you’re currently in the process of creating your own investment fund, please rest assured that it’s completely normal to feel apprehensive.
That’s why I wanted to write this blog post. Specifically, I want to explore three of the most common fears that most start-up managers have (before explaining how we can help alleviate these fears).
Fear #1: Huge Start-up Costs
Fund formation is notoriously expensive. In last week’s email, I mentioned that most law firms charge upwards of $30,000 USD for basic fund formation services. Clearly, this can make some investment fund managers feel nervous. But with IFINA, fund formation doesn’t have to be expensive. We offer a complete fund solution across all asset classes from under $10,000 USD.
Fear #2: Limited Time Resource
Creating an investment fund is also time intensive (as most people would expect). However, this can present a problem for even the most disciplined of investment fund managers. Namely, fund managers struggle to dedicate enough time to their primary responsibility: executing their investment strategy for their investor clients.
Understandably, this can lead to fund managers fearing that they’ll have the time to actually deliver for the fund’s investors. However, here at IFINA, we help our investment fund managers utilise their time effectively by taking care of all fund administration tasks – leaving traders to focus on what they do best: trading.
Fear #3: Falling Behind The Regulatory Curve
The best investment fund managers keep their eyes open for new investment opportunities. One recent example is cryptocurrencies. But fund managers sometimes fear that new opportunities can present regulatory uncertainties (that’s certainly true of cryptocurrencies). That’s why a competent fund administrator is critical. Here at IFINA, we take steps to ensure that we’re familiar with the changing regulatory space for emerging asset classes, including cryptocurrencies.
If you’re ready to create your own investment fund we should talk. Just email me and I’d be happy to arrange a call with you.